Business banking startup Mercury, founded in 2020, is now launching a consumer banking product. Mercury today serves more than 100,000 businesses, many of which are startups, via its B2B practice.
The expansion is a natural move for the company and one that has been in the works for a couple of years, according to Immad Akhund, Mercury’s co-founder and CEO.
“We already have a few hundred thousand users of our business banking product, and a lot of people have expressed that they want a personal banking product,” he told TechCrunch in an interview.
While there are plenty of neobanks, many of them “focus on the underbanked. It’s not a great market for power users” who need features like wire transfers or support for multiple users, features that Mercury’s service offers, according to Akhund. Other features are of the type expected by banking power users: multiple debit cards with custom spending limits, access up to $5 million in FDIC insurance through its partner banks and their sweep networks, and interest-bearing savings accounts.
Essentially, Mercury hopes to convert many of its business clients into customers. It’s not going after the masses like say Chime or Dave.
The expansion into personal banking comes at an interesting time for Mercury, which recently made headlines for being the target of federal scrutiny around its practice of allowing foreign companies to open accounts through one of its partners, Choice Bank.
According to a report by The Information, the FDIC was “concerned” that Choice “had opened Mercury accounts in legally risky countries.” Officials also reportedly chastised Choice for letting overseas Mercury customers “open thousands of accounts using questionable methods to prove they had a presence in the U.S.”
And that’s not all. The FDIC also wasn’t happy that Choice hadn’t “vetted a compliance system Mercury was using, which the agency said was flagging a curiously low number of suspicious transactions.”
Adding fuel to the fire, Mercury also earlier this year reportedly told users with Evolve Bank & Trust-issued debit cards that those cards would no longer work where the merchant has a legal address in 41 countries, including Turkey, Ukraine, Cuba and Iran. (Evolve is also a partner of Mercury’s.) When TechCrunch asked about these allegations, the company declined to comment.
When asked about The Information’s report, a Mercury spokesperson emphasized that the company is investing in its risk and compliance teams. The person also said the fintech partner banking market as a whole has been the target of more regulatory scrutiny.
Alexey Likuev, who led the buildout of the consumer offering for Mercury, acknowledges there are “definitely more rigorous regulations around consumer protection” and said the company has been mindful of those regulations when it built out its consumer product.
Crossing over
But success in B2B banking doesn’t automatically queue up Mercury to handle consumer banking. Each has differing regulations and compliance issues, noted Gartner analyst Agustin Rubini. Risk management for personal banking, for instance, is about assessing the individual’s financial stability, “which can be less predictable compared to businesses,” he said.
More than that, adhering to stringent regulatory requirements can be “challenging” for startups, he warns. “The complexities increase when partnering with a bank due to the additional layers of regulation that apply to banking services,” he said. “This includes everything from anti-money laundering (AML) protocols to meeting capital requirements.”
Rubini added that partnering with a bank can help the startup by providing an initial platform and compliance framework, but then scaling up operations to a larger customer base can open up a different can of worms. Startups need “substantial capital and strategic planning” to do that well while staying competitive, and without running afoul of regulators.
Cesare Fracassi, associate professor of finance at the University of Texas at Austin, also told TechCrunch that business and consumer banking are “two different beasts, two different types of services.” But he’s a bit more bullish on fintechs trying their hand at both because he does see “obvious synergies involved in owning both the business and person” in the banking space.
That’s one of the main reasons Mercury is expanding in this direction. It could leverage much of the software powering its B2B product for its consumer offering, Akhund said.
It’s also not the only fintech thinking like this. Onyx Private, with a similar offering, recently did a reverse move, pivoting from B2C to B2B.
Besides earning revenue off of interchange fees and the interest rate spread, Mercury will make money by charging users an annual subscription fee of $240 upon the first deposit and then annually after that. Last year, it touted a big bump in business following the SVB crisis, and a recent report from Kruze Consulting showed that 40% of startups created after the SVB crisis have an account with Mercury.
The company said it’s had seven consecutive quarters of cash flow and EBITDA profitability as of March 2024. While it would not reveal hard revenue figures, it also claims that its new revenue grew by 180% last year while its customer base climbed by 60% and transaction volume by 90% to $95 billion as of January 2024.
With that growth, the startup has been hiring. Presently Mercury has 620 employees, compared to 440 at the start of 2023.
Want more fintech news in your inbox? Sign up for TechCrunch Fintech here.
Want to reach out with a tip? Email me at maryann@techcrunch.com or send me a message on Signal at 408.204.3036. You can also send a note to the whole TechCrunch crew at tips@techcrunch.com. For more secure communications, click here to contact us, which includes SecureDrop (instructions here) and links to encrypted messaging apps.
Hello there, just became aware of your blog through Google,
and found that it’s really informative. I’m gonna watch out for brussels.
I will be grateful if you continue this in future. Numerous people will be
benefited from your writing. Cheers! Escape roomy lista
Hello, after reading this awesome piece of writing i
am as well cheerful to share my familiarity here with
colleagues.
Everything is very open with a precise description of the issues. It was really informative. Your site is very useful. Thanks for sharing!
After I originally left a comment I appear to have clicked the -Notify me when new comments are added- checkbox and now every time a comment is added I get four emails with the exact same comment. Perhaps there is a way you can remove me from that service? Kudos.
The next time I read a blog, Hopefully it does not disappoint me as much as this particular one. After all, I know it was my choice to read through, nonetheless I really thought you’d have something helpful to say. All I hear is a bunch of crying about something you could possibly fix if you weren’t too busy seeking attention.
Oh my goodness! Impressive article dude! Thank you so much, However I am going through troubles with your RSS. I don’t know why I can’t join it. Is there anyone else getting identical RSS problems? Anyone who knows the answer can you kindly respond? Thanks!
Casino’nun sunduğu turnuvalar ile slot oyunlarında ekstra kazançlar elde etmek çok keyifli.
Your style is very unique in comparison to other people I’ve read stuff from. Thanks for posting when you’ve got the opportunity, Guess I’ll just bookmark this web site.
You made some really good points there. I looked on the web for additional information about the issue and found most individuals will go along with your views on this site.
This is the perfect blog for anyone who really wants to understand this topic. You realize a whole lot its almost tough to argue with you (not that I personally would want to…HaHa). You certainly put a fresh spin on a topic that has been discussed for decades. Great stuff, just excellent.
I love reading a post that can make people think. Also, thank you for allowing for me to comment.
Having read this I thought it was extremely informative. I appreciate you finding the time and energy to put this article together. I once again find myself spending a lot of time both reading and leaving comments. But so what, it was still worth it!
You ought to be a part of a contest for one of the greatest websites online. I’m going to highly recommend this blog!
You made some good points there. I checked on the net for more info about the issue and found most people will go along with your views on this web site.
Excellent write-up. I absolutely appreciate this site. Thanks!
This website truly has all of the information I wanted concerning this subject and didn’t know who to ask.
This is a topic that is near to my heart… Cheers! Where are your contact details though?
I’m amazed, I have to admit. Seldom do I come across a blog that’s equally educative and engaging, and let me tell you, you’ve hit the nail on the head. The problem is something that too few folks are speaking intelligently about. I am very happy that I stumbled across this in my search for something relating to this.
Hi, I do think this is an excellent web site. I stumbledupon it 😉 I’m going to return once again since I bookmarked it. Money and freedom is the greatest way to change, may you be rich and continue to help other people.
Good post. I absolutely appreciate this website. Keep it up!
I blog often and I really thank you for your information. The article has truly peaked my interest. I am going to book mark your website and keep checking for new information about once a week. I subscribed to your Feed too.
Howdy! This article couldn’t be written much better! Looking through this post reminds me of my previous roommate! He always kept talking about this. I’ll forward this post to him. Fairly certain he’ll have a great read. Thanks for sharing!
As someone that’s constantly been cautious about my
blood glucose, locating Sugar Protector has actually been an alleviation. I really feel so much extra in control, and my recent check-ups have
revealed favorable enhancements. Understanding I have a reliable supplement
to sustain my routine provides me peace of mind.
I’m so grateful for Sugar Defender’s influence on my health!
Greetings! Very useful advice within this article! It’s the little changes that produce the most significant changes. Many thanks for sharing!
Pretty! This has been an extremely wonderful post. Many thanks for providing this information.
Bahis siteleri deneme bonusu ile oyuna başlamak risksiz ve kazançlı!
bookmarked!!, I really like your website!
Hey! Do you know if they make any plugins to help with SEO?
I’m trying to get my website to rank for some targeted keywords but I’m not seeing very good gains.
If you know of any please share. Many thanks!
I saw similar blog here: Eco blankets
Very nice write-up. I certainly love this website. Continue the good work!
Spot on with this write-up, I absolutely believe this amazing site needs far more attention. I’ll probably be back again to read more, thanks for the information!
Having read this I thought it was really enlightening. I appreciate you finding the time and energy to put this informative article together. I once again find myself spending way too much time both reading and leaving comments. But so what, it was still worthwhile.
Hello! I simply want to offer you a huge thumbs up for your great information you have got here on this post. I’ll be returning to your website for more soon.
Right here is the perfect site for everyone who wishes to understand this topic. You understand so much its almost hard to argue with you (not that I really will need to…HaHa). You certainly put a new spin on a subject which has been discussed for a long time. Great stuff, just great.
Hi, I do think this is a great web site. I stumbledupon it 😉 I will return once again since i have book-marked it. Money and freedom is the best way to change, may you be rich and continue to help other people.
Turnuvalara katılmak hem eğlenceli hem de kazançlı.
Good write-up. I absolutely appreciate this site. Continue the good work!
Bu casino’da oynadığım slot oyunları her zaman büyük kazançlar sunuyor.
Wonderful post! We are linking to this great content on our site. Keep up the great writing.
Oh my goodness! Incredible article dude! Thanks, However I am experiencing problems with your RSS. I don’t know the reason why I cannot subscribe to it. Is there anybody else getting the same RSS problems? Anyone who knows the answer will you kindly respond? Thanx!
I used to be able to find good advice from your blog posts.
Hi there! I simply want to give you a huge thumbs up for your great information you’ve got right here on this post. I’ll be coming back to your blog for more soon.
Pretty! This was an incredibly wonderful post. Thank you for providing this information.
I could not refrain from commenting. Perfectly written.
Your style is very unique compared to other people I have read stuff from. Thanks for posting when you have the opportunity, Guess I will just book mark this page.
Bahis siteleri deneme bonusu ile oyunlara riske girmeden başlayarak hemen kazanç sağladım!
Deneme bonusu ile hiç para yatırmadan kazanç sağladım, harika bir fırsat!
Bu casino’da futbol maçlarına bahis yaparken aldığım bonuslar her zaman ekstra kazanç fırsatları sunuyor!
Great information. Lucky me I discovered your website by accident (stumbleupon). I’ve book marked it for later!
You have made some really good points there. I checked on the web for more info about the issue and found most individuals will go along with your views on this website.
Right here is the right blog for everyone who wishes to understand this topic. You understand a whole lot its almost hard to argue with you (not that I actually would want to…HaHa). You certainly put a fresh spin on a subject that’s been written about for years. Wonderful stuff, just excellent.
Good post. I learn something totally new and challenging on sites I stumbleupon on a daily basis. It will always be helpful to read through articles from other writers and practice something from their web sites.
Hi! I just want to offer you a big thumbs up for your excellent info you have here on this post. I will be coming back to your site for more soon.
I blog frequently and I genuinely appreciate your information. This great article has truly peaked my interest. I’m going to take a note of your blog and keep checking for new information about once a week. I subscribed to your Feed too.
Excellent post. I am experiencing many of these issues as well..
Casino’nun sunduğu düşük bahis seçenekleri yeni oyuncular için harika bir fırsat.
Good write-up. I definitely love this site. Keep writing!
Bu casino’nun sunduğu turnuvalar ve promosyonlar ile slot oyunlarında daha fazla kazanıyorum.
After looking over a number of the blog posts on your web site, I honestly like your technique of blogging. I book marked it to my bookmark website list and will be checking back in the near future. Please visit my web site as well and tell me what you think.
This is the right site for everyone who would like to understand this topic. You know so much its almost tough to argue with you (not that I personally would want to…HaHa). You definitely put a brand new spin on a subject that’s been discussed for a long time. Great stuff, just great.
Your style is very unique compared to other folks I have read stuff from. Thanks for posting when you’ve got the opportunity, Guess I will just book mark this site.
Deneme bonusu ile bahis yaparken riske girmeden kazanç elde ediyorum.
Bahis sitelerinde deneme bonusu ile crash oyunlarına sıfır yatırımla başlamak çok keyifli!
I was able to find good information from your articles.
I couldn’t resist commenting. Exceptionally well written!
Very good information. Lucky me I ran across your site by chance (stumbleupon). I have saved as a favorite for later.
Slot oyunlarına eklenen bonuslar kazanç şansını artırıyor.
Hi, I do believe this is an excellent blog. I stumbledupon it 😉 I’m going to revisit once again since i have bookmarked it. Money and freedom is the greatest way to change, may you be rich and continue to guide others.
I’m impressed, I must say. Rarely do I encounter a blog that’s equally educative and engaging, and let me tell you, you have hit the nail on the head. The problem is something which not enough people are speaking intelligently about. I am very happy that I stumbled across this during my search for something concerning this.
Deneme bonusu ile bahis yaparken para kaybetme riski yok, harika bir fırsat!
Hi, I do think this is an excellent blog. I stumbledupon it 😉 I may return once again since I bookmarked it. Money and freedom is the best way to change, may you be rich and continue to help others.
Casino’nun sunduğu promosyonlar bahis yaparken kazançlarımı artırıyor, bu harika!
There’s definately a lot to find out about this issue. I really like all of the points you’ve made.
En sevdiğim slot oyunu Vikings Go Wild, kazançlarım her geçen gün artıyor!
Having read this I believed it was very enlightening. I appreciate you spending some time and energy to put this information together. I once again find myself spending way too much time both reading and leaving comments. But so what, it was still worthwhile.
Great info. Lucky me I recently found your site by chance (stumbleupon). I have saved it for later!
Hi there! This blog post couldn’t be written any better! Looking at this post reminds me of my previous roommate! He always kept preaching about this. I’ll forward this article to him. Fairly certain he’s going to have a great read. Thank you for sharing!
Saved as a favorite, I love your site!
You made some decent points there. I checked on the net for more information about the issue and found most people will go along with your views on this web site.
Futbol bahislerinde strateji yaparak her zaman büyük kazançlar elde ediyorum!
Hi there! I could have sworn I’ve been to this website before but after going through some of the articles I realized it’s new to me. Anyhow, I’m certainly happy I found it and I’ll be bookmarking it and checking back frequently.
You are so cool! I don’t think I have read through anything like this before. So wonderful to discover someone with original thoughts on this subject. Seriously.. many thanks for starting this up. This site is one thing that is required on the web, someone with a bit of originality.
Very nice write-up. I certainly appreciate this website. Continue the good work!
The next time I read a blog, I hope that it doesn’t fail me as much as this particular one. After all, Yes, it was my choice to read through, but I actually thought you would have something helpful to say. All I hear is a bunch of complaining about something that you can fix if you were not too busy searching for attention.
I blog quite often and I really thank you for your information. The article has truly peaked my interest. I’m going to bookmark your blog and keep checking for new information about once per week. I opted in for your RSS feed as well.
Hello there! I simply would like to give you a big thumbs up for the excellent information you’ve got here on this post. I will be coming back to your web site for more soon.
I couldn’t resist commenting. Well written.
You need to take part in a contest for one of the highest quality websites on the net. I most certainly will highly recommend this blog!
Bu casino’da slot oyunlarında kazanmak çok eğlenceli, herkes denemeli!
An interesting discussion is worth comment. I think that you need to publish more on this topic, it might not be a taboo matter but typically people do not speak about such issues. To the next! All the best!
En sevdiğim slot oyunu Fire in the Hole, her spin heyecan verici ve kazançlı.
Oh my goodness! Incredible article dude! Thanks, However I am going through troubles with your RSS. I don’t know the reason why I cannot join it. Is there anybody having identical RSS problems? Anybody who knows the solution can you kindly respond? Thanx!!
Very good blog post. I definitely love this site. Thanks!
Casino’daki slot oyunlarının kazandırma potansiyeli gerçekten etkileyici.
This site was… how do I say it? Relevant!! Finally I have found something which helped me. Cheers!
Excellent post. I certainly love this website. Thanks!
Casino’nun sunduğu promosyonlar futbol bahislerinde daha fazla kazanma şansı sunuyor!
This is the right webpage for anyone who would like to find out about this topic. You realize a whole lot its almost hard to argue with you (not that I really will need to…HaHa). You definitely put a brand new spin on a topic which has been written about for many years. Great stuff, just wonderful.
Casino’daki slot oyunlarının grafikleri ve ses efektleri mükemmel bir deneyim sunuyor!
Aw, this was an incredibly good post. Finding the time and actual effort to make a superb article… but what can I say… I put things off a lot and don’t manage to get nearly anything done.